Intercreditor Agreement
An agreement between two or more lenders to the same business, spelling out each lender's rights, priority, and remedies relative to one another.
When a business has multiple secured lenders, an intercreditor agreement formally establishes who gets paid first, how collateral is shared or divided, and how each lender can act if the business defaults, reducing the risk of conflicting claims.
These agreements are more common in larger, more complex financing structures than in a single small business loan, since they require active coordination between multiple lenders rather than a business dealing with just one.
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.